Activating the AI co-pilot within the insurance value chain – the role of Suggestive AI

By Craig Olivier, CTO, Genasys
14 May 2024
Activating the AI co-pilot within the insurance value chain - the role of Suggestive AI

Activating the AI co-pilot within the insurance value chain – the role of Suggestive AI 

 

Doomsday-style industry headlines combined with genuine excitement about its potential means that AI continues to gain attention and caution in equal measures since its move into the public consciousness. The hype surrounding AI is there for all the right reasons. It’s the next phase of the digital revolution and applied responsibly, it’s going to shift and transform the insurance industry. 

The saying ‘fools rush in’ has huge resonance with the application of AI and we’re seeing it already. There are cases where people are getting in way above their heads as they try to implement AI in ways which are unsuitable, or simply for the sake of it, without proper consideration to good practice use. The hype cycle is well documented: industry adoption and subsequent appetite take a nosedive when expectation is inflated and poorly managed leading to disillusionment and commercial loss which then sets the industry back from making meaningful progress.  

But by taking a considered, pragmatic approach and, this is critical here, by being completely honest about what you want to achieve will put you in the right frame of mind to navigate the opportunities that the new world of AI presents. This means pausing and taking a step back to consider how AI can be used in a way that supports business aspiration by solving a real problem while genuinely making the process of buying and claiming insurance an infinitely better experience for the consumer. The right application of AI can unlock the insurance value chain – making insurance easier and more rewarding for insurers, MGAs, brokers and their customers. 

 

Automation versus AI 

Automation is about optimising your business and becoming operationally exceptional and that’s how you trade better: it’s where every business wants to be. To get there it’s all about understanding your processes and where the bottlenecks are, what’s taking too much time, what’s costing you money and what’s stopping you from gaining and retaining customers; then pointing the technology at these pain points or problem areas to enable your teams to focus on high-value tasks and workstreams. 

From my experience of working with clients across the insurance sector for over two decades, automation and efficiency are the biggest issues impacting the bottom line. And when addressed intelligently, they immediately create cost savings as well as a better experience for the end customers.  

Increasingly within the insurance world, automated processes are becoming intrinsically linked to different AI capabilities. But I know first-hand from industry conversations that to the uninitiated, AI, is a hazy world. There’s a feeling that it’s easy to get quickly left behind, or conversely locked in, so business leaders are looking for software partners to nurture and guide their understanding with integrity to help mitigate risk.  

 

The nuances of AI 

In these early days of fast-paced AI innovation, we should be aware that currently there’s no universally-agreed definition of AI. In my own day-to-day world, typically I read media reports where the term ‘AI’ is used. But as I read between the lines, what’s actually being referred to is Generative AI, often with the journalist detailing how the latest application of Generative AI has thrown up major societal questions as new content is created from unreliable or unverified data sources.  

So what does the commercially-savvy application of AI look like? The fact is that the real-world business use of AI is actually far more nuanced than the frequent media examples of Generative AI ‘gone rogue’. What particularly excites me is the role of a form of AI referred to as Suggestive AI. 

Known by some and overlooked by many, Suggestive AI shouldn’t be bundled into the same headline-grabbing category as Generative AI. Its powerful role in large data interpretation has a real transformative impact for insurance businesses which, in my view, means it hits the sweet spot of innovative tech to responsibly solve genuine business challenges. 

 

Suggestive AI the role of the co-pilot 

Where Generative AI creates new content and so by default understandably creates a level of anxiety about its accuracy and authenticity, think of Suggestive AI as your co-pilot, guiding you to a safe and soft commercial landing as it enhances your decision-making. For me, Suggestive AI creates efficiency within the insurance value chain. Why? Because it empowers businesses to make robust decisions to transform the customer experience in real time which in turn transforms the bottom line.  

Suggestive AI is the co-pilot enabling insurance businesses to pull together different, reliable data sources including IoT data feeds to better understand risk and claim prevention, improve the accuracy of underwriting and improve the ability to detect fraud. Armed with this data insight, a much more informed decision can be reached to then share this information and insight back to stakeholders across the insurance value chain.  

As a result, businesses can really deliver personalised cover, laser-focused pricing, rigorous fraud management by understanding behaviours, accurate risk selection and rhythmic risk mitigation while elevating claims and underwriting work benches to the next level. To effectively implement Suggestive AI, and indeed AI in all its catch-all glory, an insurance business’ tech platform requires the flexibility, control and advanced functionality to plug into an ever-evolving ecosystem of partners. Such an approach provides the agility and flexibility to explore, discover and test the AI capabilities that will you give the desired commercial edge. 

 

The art of the possible 

I believe that an ever-present responsibility rests with vendors delivering core tech platforms to always be canvasing the best-of-breed AI partners, working to provide access to an AI toolbox designed to effectively address industry-specific problem statements. There’s a careful balance to provide innovation without being overwhelming. It’s about creating a true partnership where the client knows that they’ll be looked after – supported to leverage AI capability and explore the art of the possible. 

Our role is to encourage responsible experimentation of AI products by our clients so they can see what works for them today and in the future, creating an ecosystem to enable insurance businesses to innovate and future-proof their operations. This means providing elegant tech solutions where all the hard work of horizon-scanning and testing the latest AI applications is regularly completed with those that genuinely work quickly integrated into the client’s ecosystem to access when they need to. And ultimately, we need to live and breathe what we are offering with our teams trialing, testing and using the latest AI solutions and techniques in our very own business as usual operations.  

 

Connecting to AI-enabled opportunity 

Listening to and understanding clients’ challenges and guiding them to connect to an ecosystem of AI experts is a real privilege for me. Working as a conduit to a new world of responsible AI-enabled opportunity is rewarding because ultimately everyone across the value chain benefits. In partnership, we’re positively changing the way insurance is done while providing the foundations and flexibility to run and grow a modern insurance business. Undoubtedly, we’re entering an exciting era within insurance.  

 

Craig Olivier, Group Chief Technology Officer, Genasys Technologies 

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